MIRA INFORM REPORT

 

 

Report No. :

304405

Report Date :

24.01.2015

 

IDENTIFICATION DETAILS

 

Name :

DSA FIBRES (ZHANGJIAGANG) LTD.

 

 

Registered Office :

Room 1102b, Textile Material Market, Free Trade Zone Logistics Park, Zhangjiagang, Jiangsu Province, 215633

 

 

Country :

China

 

 

Date of Incorporation :

22.11.2002

 

 

Com. Reg. No.:

320592400001175

 

 

Legal Form :

Chinese-Foreign Equity Joint Venture Enterprise

 

 

Line of Business :

Subject is engaged in selling textiles.

 

 

No. of Employee :

15

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

CHINA - ECONOMIC OVERVIEW

 

Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation and expanded the daily trading band within which the RMB is permitted to fluctuate. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2013 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.

 

Source : CIA

Company Name and Address

 

DSA FIBRES (ZHANGJIAGANG) ltd.

ROOM 1102B, TEXTILE MATERIAL MARKET, FREE TRADE ZONE LOGISTICS PARK, ZHANGJIAGANG, JIANGSU PROVINCE, 215633 PR CHINA

TEL: 86 (0) 512-58327716           FAX: N/A

 

 

EXECUTIVE SUMMARY

 

INCORPORATION DATE            : NOV. 22, 2002

REGISTRATION NO.                  : 320592400001175

REGISTERED LEGAL FORM     : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE

CHIEF EXECUTIVE                   : MR. ZHANG YI (CHAIRMAN)

STAFF STRENGTH                    : 15

REGISTERED CAPITAL : USD 1,230,000

BUSINESS LINE                        : TRADING

TURNOVER                              : N/A

EQUITIES                                 : N/A

PAYMENT                                : UNKNOWN

MARKET CONDITION                : AVERAGE

FINANCIAL CONDITION             : N/A

OPERATIONAL TREND : STEADY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                    : CNY 6.2269 = USD 1

 

 

HISTORY

 

Note: SC’s current operating address and correct contact no. should be the heading ones, while the given tel. no. (025-51887300-8016) belongs to DSA Textile Enterprises Ltd., and the was the former one.

 

SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Nov. 22, 2002.

 

Company Status: Chinese-foreign equity joint venture enterprise

This form of business in PR China is defined as a legal person. It is a limited co. jointly invested by one or more foreign companies and one or more PR China controlled companies within the territories of PR China according to a certain proportion of capital investment. The investing parties exercise business management, share profits and bear all risks and liabilities of the co. together. The equity joint venture law requires that foreign party contribute not less than 25% of the registered capital, with no maximum. The investing parties are free to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The joint venture usually has a limited duration of 10 to 50 years. Enterprise with large investment, long construction periods, low investment returns, introducing of advanced technology & advanced technology products that have good competition position in international market may extend beyond the 50 years limit.

 

SC’s registered business scope includes import and export trade in the bonded area, entrepot trade, trade among enterprises in the domestic bonded area, and trade among enterprises that has the right to operate import and export outside the bonded area; commission processing related to trade.

SC is mainly engaged in selling textiles

 

Mr. Zhang Yi is legal representative and chairman of SC at present.

 

SC is known to have approx. 15 employees at present.

 

SC is currently operating at the above stated address, and this address houses its operating office in the Free Trade Zone Logistics Park of Zhangjiagang. Detailed premise information is not available at present. 

 

 

WEB SITE

 

SC is not known to host website of its own at present.

 

 

KEY EVENTS / RECENT DEVELOPMENT

 

Changes of its registered information:

 

Date of change

Item

2014-8-7

Company’s Chinese name

Note: SC changed its Chinese name in 2014, while its English name remains the same.

 

Organization Code: 743739068

 

 

LITIGATION

 

For the past two years there is no record of litigation.

 


 

OWNERSHIP / MANAGEMENT

 

MAIN SHAREHOLDERS:

 
Name                                                    Amount (USD)                           % of Shareholding

 

Grand Sun International Pty Ltd. (Australia)      767,953.3                                     62.44

 

DSA Textile Enterprises Ltd.                           462,046.7                                     37.56

 

DSA Textile Enterprises Ltd.

Registration no.: 320100000086728

Registered capital: CNY 20,000,000

Legal representative: Han Xiaojun

Incorporation date: 1998-04-20

Tel: 86-25-51887300-8016

Fax: 86-25-84701398

Address: 17/F Tiancheng Mansion, No.199 Guangzhou Road, Nanjing

http://www.dsatex.com/

 

 

MANAGEMENT

 

l  Legal representative and chairman: 

 

Mr. Zhang Yi  is currently responsible for the overall management of SC.

 

Working Experience(s):

At present                                          Working in SC as legal representative and chairman.

 

l  Vice-chairman:

 

Han Xiaojun is currently responsible for the daily management of SC.

 

Working Experience(s):

At present         Working in SC as vice-chairman.

 

Also working in DSA Textile Enterprises Ltd., Yangzhou Hengli Textile Co., Ltd., Zhangjiagang Luhao New Textile Co., Ltd. (in Chinese pinyin) as legal representative.

 

l  Director:

 

Wu Yue

 

Note: the given contact person (Miss Lin Jing) is confirmed to be working in DSA Textile Enterprises Ltd.


BUSINESS OPERATIONS

 

SC is mainly engaged in selling textiles.

 

SC’s products mainly include: textile material, yarn, curtain, medical non-woven fabric, solution-dyed acrylic, etc.

 

SC sources its materials 100% from domestic market. SC sells its products 30% in domestic market, and 70% to overseas market.

 

The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.

 

Note: SC’s management refused to release its main suppliers and clients.

 

 

RELATED COMPANIES

 

Yangzhou Hengli Textile Co., Ltd.

Registration no.: 321000400006211

Legal representative: Han Xiaojun

Incorporation date: 2004-02-25

 

SC is known to invest in the following company:

 

Zhangjiagang Luhao New Textile Co., Ltd. (in Chinese pinyin)

Registration no.: 320582000183239

Legal representative: Han Xiaojun

Incorporation date: 2009-07-08

 

 

PAYMENT

 

Overall payment appraisal :

(  ) Excellent      (  ) Good      (X) Average      (  ) Fair      (  ) Poor      ( ) Not yet determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay.  It is based on the 3 weighed factors:  Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment and our debt collection record concerning SC.

 

Trade payment experience : SC did not provide any name of trade/service suppliers and we have no other sources to conduct the enquiry at present.

 

Delinquent payment record : None in our database.

 

Debt collection record : No overdue amount owed by SC was placed to us for collection within the last 6 years.

BANKING

 

SC declined to release its banking details.

 

 

FINANCIAL HIGHLIGHTS

 

SC’s management declined to release any financial information.

 

 

REMARKS

 

SC is considered small-sized in its line with 13 years operation history. Taking into consideration of SC’s operation size we would rate SC as an above average credit risk company. Credit confined into small amount may be considered.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.50

UK Pound

1

Rs. 92.16

Euro

1

Rs. 69.62

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.